Proposed Iran-U.S. deal would reopen Hormuz strait and lift oil sanctions, Iran state media says
The draft Iran-US memorandum of understanding includes a US commitment to lift oil sanctions and Iran’s commitment to reopen the Strait of Hormuz within 30 days, Iranian state media reported on Friday.
According to Mehr News Agency, the 14-article document states that final negotiations will not begin until half of Iran’s frozen funds are released, Iran’s oil sanctions are suspended and the naval blockade is lifted.
According to the report, all American forces will need to withdraw from Iran, and the United States and its allies will need to submit reconstruction plans for Iran worth at least $300 billion.
CNBC has reached out to the White House for comment.
Peace agreement hoped for
He said in the Oval Office that the Strait of Hormuz would reopen as soon as the agreement was signed.
Israel has not yet commented on the latest draft memorandum of understanding shared by Iranian state media on Friday.
Trump said Thursday that he had spoken with Israeli Prime Minister Benjamin Netanyahu and other regional leaders about a possible memorandum or understanding with Iran.
Netanyahu’s office confirmed the meeting later Thursday. The statement said that although Israel was not part of the negotiations with Iran, the prime minister appreciated Trump’s “determination that reaching a final agreement at the end of the negotiations would include various restrictions on Iran’s nuclear capabilities and other behavior.”
Approximately 25% of the world’s seaborne oil trade and 20% of global LNG passes through the Bosphorus, a vital oil shipping route that became a major transit point during the war.
Global stocks rose on Friday on hopes of reaching a peace deal. European stocks rise; Most major exchanges were up around 2% in morning trading, while the pan-European Stoxx 600 gained 1.8%.
Oil prices fell and US crude oil futures for July delivery fell 1.61%. August futures contracts of international benchmark Brent lost 1.75 percent.
